Procurement Services (7000) Procedures

.100 General

This section provides requirements and regulations for all procurements made for James Madison University by faculty, staff, and administrators whatever the source of funds. The requirements cover all procurements charged to University funds, including Educational and General, Auxiliary Enterprises, Sponsored Programs (Grants and Contracts) and Local/Agency Fund Accounts.

James Madison University must process all procurements within the policies and procedures set forth in the Rules Governing Procurement of Goods, Services, Insurance and Construction AND the Commonwealth of Virginia Purchasing Manual for Institutions of Higher Education and their Vendors. Both of these documents can be accessed directly at http://www.jmu.edu/procurement/departmental-guide/02.shtml.

The objective of effective procurement is to obtain high quality goods, supplies, and services, at low prices that are both fair and reasonable. Individuals must procure goods and services fairly and impartially to avoid impropriety or the appearance of impropriety. The University expects individuals involved in procurement for the University (requestor, approver, or those having responsibility for entering the orders) to exercise prudent judgment. All purchases regardless of dollar amount are easily available for public review.

.110 Un-Authorized Purchases

Purchases not made according to these procedures are subject to Non-Payment of the vendor invoice by the University. At the discretion of the Director of Procurement Services departments that do not follow the procedures are subject to having their departmental purchasing delegation removed.

.200 Control Responsibilities

.210 Department

Makes only authorized procurements according to University policies and procedures.

Properly prepares and distributes manual or electronic procurement documents according to this procedure.

Ensures that the signatory authority for the Department ID shown on the manual or electronic procurement document approves the request.

Confirms that sufficient funds are available in the department's budget to cover the cost of the purchase.

Maintains departmental records of all purchases to preclude duplicate orders.

Ensures that the University is obtaining the best possible value when procuring goods and services.

Takes necessary steps to ensure that an individual who places an order does not complete the receiving document for that order.

Performs procurement actions timely to preclude the need for special action or granting of an exception.

Contacts ILT Operations for printing requests that meet the criteria for design services contained in the Identity Leadership Team website for information concerning university publications, such as editorials, graphics, and web standards.

Contacts Facilities Management prior to initiating any procurement that may modify, repair, renovate or alter any campus facility, major equipment or building system.

Procures items costing $5,000 or more, items costing less than $5,000 if requested by department, sole source items, and restricted items (as listed on the Procurement Services WebPages and on the manual DPO Form) to include conducting the applicable procurement process, when required.

Returns any incomplete procurement documents (electronic and manual) to the originating department with the reason for not processing the document.

.300 Restricted Purchases

.310 Emergency Procurements

The University restricts emergency procurements to those items that are necessary to eliminate a situation that could threaten the loss of life or property or cause injury. In these situations, University employees should take the actions necessary to resolve the emergency. In an emergency, departments may procure the goods or services necessary without competitive bidding. The individual handling the emergency should contact the Office of Procurement Services, if possible, before taking any actions. The department or individual involved should prepare a full justification for the emergency purchase and the necessary procurement action. The appropriate administrative official or their designee should prepare the documentation and forward copies to the Director of Procurement Services for approval. Emergency procurement procedures may be used to purchase only that which is necessary to cover the requirements of the emergency.

.320 Procurements Performed by the Office of Procurement Services

The Office of Procurement Services is responsible for procuring goods and services valued at $5,000 or more, purchases costing less than $5,000 if requested by department, sole source purchases, restricted items, Equipment Trust Fund at $5,000 and above, and services (as detailed on the Procurement Services Webpage).

When Procurement issues a solicitation for a specific good or service, the buyer in Procurement Services will often issue the eVA Direct Order to document the award made at the completion of the competitive solicitation process. The buyer seeks approval prior to aware to ensure the price does not exceed the department's funds. Procurement will ensure the vendor receives copies of the Direct Order. Procurement Services will keep the department informed in regards to the issuing of a Direct Order. The requesting department may access the Direct Order through the eVA Procurement System. The amount indicated on the Direct Order issued supersedes the Purchase Requisition. The originating department should use the dollar amount of the Direct Order, not the Purchase Requisition, for budget reconciliation purposes.

In some situations, especially related to "on-demand" contracts, the department will enter the Purchase Requisition into eVA, including all appropriate back-up documentation and appropriate expenditure authority approvals. The Purchase Requisition, for requests $5,000 or more, will flow to Procurement Services for review and approval. In this situation the department is responsible for ensuring the vendor appropriately receives the orders.

.321 Sole Source Purchases

Sole source procurements costing $5,000 or more require a written justification. Departments requesting sole source purchases costing $5,000 or more should prepare an electronic (eVA) Purchase Requisition and attach a justification using the standard form provided by Procurement Services (see “FORMS” on the Procurement Services website) for the sole source request.

.322 Restricted Purchases

The Office of Procurement Services must procure restricted items no matter the cost of the goods or service. The following are restricted items not allowed for purchase by a JMU department:

Other restricted items may be added at any time. JMU Procurement Services updates the most up-to-date list on its website (click here: Procurement - restrictions).

.323 Recurring Procurements

The University must competitively procure goods and services that are anticipated to be recurring in nature if the onetime cost exceeds $4,999.99 or accumulated cost exceeds $50,000 over a twelve month period. The Procurement Services Department requires an electronic eVA Purchase Requisition and will complete the applicable procurement process on behalf of the department. Frequently, recurring purchases of goods or services will result in a term contract being negotiated on behalf of the University; however, Procurement Services may also recommend the use of an existing cooperative contract rather than soliciting a new agreement.

.330 Acquisition of Property

The Office of Real Property is responsible for acquiring buildings and land for use by the University. University departments should contact that office before making any arrangements to rent, lease or purchase land or buildings.

.340 Capital Outlay Projects

The Office of Facilities Planning and Construction is responsible for overseeing Capital Outlay, Construction and Professional Services projects. University departments should contact that office concerning all capital outlay (construction) projects. Construction projects that are defined as "Capital Outlay” typically cost greater than $2,000,000.00. The Office of Procurement Services is responsible for handling the procurement process of awarding a contract for capital outlay construction as well as purchasing furniture, furnishings and equipment for installation within a capital outlay construction project.

.350 Printing and Publication Services

When printing projects are $5,000 or more and cannot be part of an existing printing contract or handled through the JMU Copy Center, the Office of Procurement Services must competitively solicit the service. Depending upon the complexity and dollar value of the project, this process may require from 3 to 90 business days. After determining the vendor to receive the award, the Office of Procurement Services will contact the requesting department and request a completed eVA Purchase Requisition for the accepted/negotiated cost.

The University provides printing services including envelopes, business cards and stationary through the Copy Center.

.360 Duplicating Services

The University provides copying services at various locations on the campus and all departments are highly encouraged to use the on-campus copy centers. The James Madison University Telephone Directory lists the various locations under "Copy Centers."

.400 Delegated Purchasing Authority

The University has delegated certain procurement authority except "Restricted Purchases," to Departments. The University expects these departments to comply with purchasing regulations and exercise prudent judgment when procuring goods, supplies, and services. Employees who make purchases must first obtain approval of the departmental approving authority for the Department ID charged. The University does not require departments to accept delegated purchase authority. When departments do not accept delegated authority, the Office of Procurement Services will perform the procurement function. Departments, not accepting delegated authority, must complete and submit an eVA Requisition for Purchase for all purchases. Departmental delegation can be revoked, at the discretion of the Director of Procurement Services, due to repeated or severe non-compliance to JMU and Commonwealth Procurement Policies and Procedures.

.410 Purchases Costing $4,999.99 or less

Departments may procure goods and services, except "Restricted Purchases, valued at $4,999.99 or less through the eVA Procurement System. The University prefers that departments use the Small Purchase Charge Card (SPCC) for all vendors who accept the card. On-line auctions (example: e-bay) is allowed when all rules governing Procurement procedures and Accounts Payable payments are met. Accounts Payable will audit each of these transactions for compliance.

Purchases may be made through the Internet using the SPCC. All purchases of this type must be recorded in eVA as a confirming order. The department should be sure that the vendor has a secure Socket Layer (SSL) Version 2.0 or greater. To ensure that the vendor has a SSL, the Address Window must start with https://. Information about the vendor's security certification is available under Help on the browser tool bar. This may not occur until the payment information is requested.

The individual making the purchase must request a vendor invoice, or an itemized receipt. For purchases through the Internet, print a copy of items purchased after the order is placed and retain it for departmental records and reconciliation of monthly SPCC purchases. Ideally, the invoice or itemized receipt will be electronically attached to the eVA order.

Employees should not use cash or a personal credit card except in an emergency, when no other method of payment is accepted.

The DPO(word document found on Procurement Web Site) is to be used for items when the department and/or the vendor needs paper documentation of an order that is not required to be entered into eVA (it is an eVA exclusion). eVA may also still be used to process this type of order, using the "X02 PO Category Code.

The department head is responsible for the proper administration of the DPO to ensure proper procurement practices and for ensuring that there are sufficient funds in the departmental budget to cover the expenditures of the DPO. A DPO is only appropriate when the item is appropriately excluded from eVA and the total order is under $5,000. Orders $5,000 and over must be processed through Procurement Services regardless of any eVA exclusion.

For all invoices without an eVA DO number shown on it, the department must complete an Accounting Voucher to initiate payment.

Before completing the DPO form, refer to subsection .300 "Restricted Purchases," and to restrictions printed on the DPO form. Individuals making purchases should ensure that the vendor excludes sales tax, as the University is tax exempt.

.430 Delegated Purchase Authority

The University has delegated authority to departments to purchase goods or services costing $4,999.99 or less through the eVA Procurement System via an eVA Direct Order (DO) or Purchase Card Order (PCO). This DO/PCO may be used by university departments to purchase goods and services directly from a vendor, if the total cost, including freight is $4999.99 or less with the exception of the items listed under "restrictions." Orders shall not be "split" to stay under the $4,999.99 or less amount. Split ordering is prohibited and can result in the departmental delegation being revoked or suspended.

To complete a DO/PCO purchase through eVA, less than $5000, the department should obtain quotes/proposals from catalogs or directly from the vendors. Procurement regulations require only a quote when using the DO/PCO for orders $4,999.99 or under. It is preferred that Departments obtain one quote from a Micro-Small, Small business, Woman-owned or Minority-owned business (certified through the VA Department of Small Business & Supplier Diversity). After identifying the best source, the department may complete the DO/PCO and place the order directly with the vendor. When departments place orders by telephone, they should clearly mark the DO, "CONFIRMING ORDER - DO NOT DUPLICATE" and show the name of the vendor's contact person and basic information to explain the purchase. Confirming orders are prohibited for orders over $4,999.99. The department may mail or hand-deliver the DO/PCO to the vendor for orders not placed by telephone or not automatically delivered electronically through eVA.

While the official Departmental Delegation is $4,999.99, departments may receive one quote/proposal from a Micro-small, Small, Woman-owned, or Minority-owned business (certified by the Virginia Department of Small Business & Supplier Diversity) that is also an eVA Self Registered Vendor up to $10,000. The department will process the requisition in eVA (prior to any notification of award to the vendor), including any quote/proposal received. Procurement Services will then verify the vendor is certified with VDSBSD and is an eVA Self Registered vendor. If both criteria are met, Procurement Services will approve the order without the need to seek further competition. If both criteria are not met, Procurement Services will follow internal normal procedures which may include competitively soliciting the goods/services. Confirming orders or split orders to remain under the $10,000 limit are prohibited.

.500 Purchases from Campus Facilities

.510 Bookstore

University departments may purchase a variety of supplies from the Campus Bookstore.

.520 Postal Services

Departments may purchase postal stamps directly from Postal Services.

.530 Catering and Special Events

Departments shall request catering services by contacting the Catering and Special Events office.

.540 Facilities Management

Departments may request various services from Facilities Management by submitting a Customer Request through the AiM system. Facilities Management requires a Work Order before providing services. Departments may contact Facilities Management to determine what services are available.

Employees should contact their Building Services Coordinator for building maintenance requests for the building where they are located.

.541 JMU Warehouse Complex

The JMU Warehouse Complex maintains stock items such as cleaning supplies and light bulbs. A list of the stocked items is available from the warehouse. Departments may request items by completing the Warehouse Requisition Form at the Warehouse window.

.550 Computer Repairs or Assistance

Departments should contact the Help Desk (Telephone 83555) to request computer repairs or assistance. The Help Desk requires the ESN Number of your computer to issue a work order.

.560 Telecommunications

Requests for telephone services such as, to move or change an existing phone, obtain a telephone or request repairs, requires a memo or an E-mail describing the services requested. The memo should include an Department ID to charge for the services and the signature of the approving authority for the Organization designated.

.600 Goods and Services Exempt From Procurement Documentation

♦ Student Scholarships - The Office of Financial Aid and Scholarships must approve all scholarships.

The following are allowable, excludable items/categories that do NOT need to be procured through the eVA Procurement System. Items listed in BOLD DO NOT QUALIFY for the exclusion. Every attempt was made to list these items with clarity and relevance to typical JMU purchasing of goods. Should you need further explanation of these items/categories or assistance in determining whether an exclusion is appropriate for your purchase, you may contact Procurement Services at 568-3145.

Over the counter charge card purchases made with the VISA Small Purchase Card. To qualify for the exclusion, the purchase must be made at the site of the sale and picked up by the individual card holder at the time of the purchase.** Phone orders and web orders do not qualify as an exclusion **

Travel and lodging including any expense coded to expenditure codes 128100 through 128800 as well as 122400, 122700 and 122800. Included in this group are conference registrations, lodging, meals, and moving and relocation expenses

Professional organizational membership dues.

Training classes sponsored by a professional organization when payment is made directly to the professional organization sponsoring the training class.** Payments made directly to a company or third-party for training services are not excluded **

Exhibition rental fees for exhibitions of historical artifacts or original works of art. The rental fee may include charges other than the rental of the exhibition, such as transportation costs. Works of art, musical scores for rental purposes are excluded.** Purchases of art or musical scores are not excluded **

Placement of advertising in newspapers, magazines, journals, radio, television, etc.** This exclusion does not include the purchase/subscription of Newspapers, journals, magazines etc **

Accreditation fees and academic testing services

Award of grants by agencies and institutions to public bodies or tax excluded non-profit charitable organizations.** This exclusion does not apply to the expenditure of grant funds by agencies and institutions for the purchase of goods and/or services (see APSPM 13.8e) **

Medical (Health Care) Services when the service is provided by a hospital or an individual licensed and authorized by law to engage in the prevention, diagnosis, or treatment of human illness, injury, or physical disability, mental health, mental retardation, substance abuse, or emotional condition.** Contracts and purchase orders between the agency or institution and temporary service providers or independent laboratory testing companies are not excluded from purchasing through eVA **

Public Utilities (electric, natural gas, water, sewer).

Purchases made using the DPS-authorized multi-state drug contract.

Purchases made using DPS Contract #91026, Express Delivery Services.**Currently the State contract (DPS#91026) for express delivery services is with United Parcel Services (UPS). Thus, services provided by Federal Express or other like carriers are not covered under this exclusion. Should you use the services of companies other than United Parcel Service (UPS) for delivery services, these transactions will need to be processed through the eVA Procurement System.**

Revenue contracts, e.g., scrap, recycling or contracts with $0 payment made by the Commonwealth, e.g., contracted out Bookstore, Food service operations.

As of July 1, 2016 due to HB823 and revisions made to Chapter 680 2.2-614.4 Code of Virginia, Government to Government is no longer a valid eVA exclusion. Orders must be processed through the eVA system per normal procedures utilizing the X02 PO Category Code.

Purchases from public auctions (non-electronic).

Surplus property. An example would include JMU purchasing surplus property from another state agency, or when Federal surplus is purchased from DGS warehouse.

Reimbursement to employees for small dollar purchases less that $100 do not need to go through eVA, however these expenditures will be assessed the 1% fee. Part 2 - After July 1, 2005 the VISA Card must be used if the vendor accepts VISA.

JMU was also approved by DPS August 9, 2004 for the following eVA exclusions through June 30, 2005, or until revoked by DPS, whichever is later:

Local funds (8-XXXXX) owned by trust-agent organizations (e.g. student organizations like SGA Swimming, etc. - NOT Auxiliary Enterprises). These funds are non-state and are not owned and controlled by JMU. JMU, as custodian or fiscal agent for Local/Agency Funds, processes transactions on behalf of the owner of the funds. Per JMU Financial Procedures Manual Section 3045, all deposit and expenditure transactions must be handled in accordance with university procedures.

Unplanned and unanticipated travel and travel-related expenses under $5,000 when incurred by the Athletic Department while traveling.

Purchases made by JMU employees or agent while located in another country and the required goods/services are purchased from a vendor located in that country and the purchased goods/services will be used in the country where they are purchased.

.700 Processing Procedures

.710 eVA Procurement System

Departments must process all orders through the eVA Procurement System unless their purchase meets the one of the definitions of the nineteen eVA exclusions (see Section .600)

Departmental Buyers must attend a mandatory User training session offered by IT TrainingServices.

Those acting in a Departmental Approver role may attend the User training session.

.711 Department

Process non-excluded eVA purchases through the eVA Procurement System (this is the majority of all purchases).

Process excludable eVA purchases (see Section .600) through the eVA system using the "X02" PO Category Code (thus noting it is normally excluded from eVA) OR by submitting a manual purchase requisition and DPO (if vendor requires a purchase order) OR direct payment using a University Accounting Voucher and notating the appropriate exclusion number in the space provided OR use the Small Purchase Charge Card (if within appropriate dollar amount) to make payment and reconcile the transaction with the appropriate exclusion number in the field provided.

Verifies that sufficient funds to cover purchase are in the Departmental ID listed on the completed form.

.712 Office of Procurement Services

Serves as data steward for all purchases processed through eVA Procurement System.

Procures or approves all goods and services for items over $4,999.99 and all restricted items.

.722 Office of Procurement Services

Notifies originating department and distributes a copy of the Purchase Requisition either electronically through the eVA Procurement System or manually through inter-campus mail.

.800 Forms Preparation and Submission

.810 Direct Order (DO), Purchasing Card Order (PCO) and Paper Form of Department Purchase Order for eVA exclusions only

.811 Required, eVA Procurement System

The eVA generated DO/DPO is required for all non-excluded eVA goods and services. An eVA generated DO/PCO is also an option for any excluded good or service when the vendor requires a purchasing document.

The Departmental Purchase Order (word document, found on Procurement Services website (www.jmu.edu/procurement) may be used ONLY for excludable eVA goods and services totaling $4,999.99 or under.

.812 Where to Obtain Blank Forms

The hardcopy DPO for excludable eVA goods and services is a Word document available online.

.813 Number of Copies

Follow procedures on DPO for copies.

.814 Where to Send Completed Copies:

A (DPO) or (PCO) generated through eVA will normally be electronically sent to the vendor and copy transferred to the eVA buyers watch box which is monitored by Procurement Services. If the vendor does not accept electronically orders, the Department is responsible for being sure the DPO or PCO reaches the vendor via facsimile transmission or via email (this process should be rarely used; only in the case where the item(s) being purchased is under $4,999.99 in total (if over the user must work directly with Procurement Services), is excluded from entry into eVA (see Section .600) and a vendor requires a formal purchase order).

Departments who wish to have delivery made directly by the vendor to their department should type their building name and room number in the space provided. Departments wishing to have their goods delivered to the JMU Facilities Management Warehouse for delivery by warehouse or buildings and grounds personnel, should type "Facilities Management Warehouse" in the address portion of this space. Also include on the ATTN: line the name and telephone number of the person responsible for the purchase.Partial shipments are allowed only if vendor does not require partial payment. One payment will be made when all items are received.

Send Invoice To:

Unless your department is listed as an option, mark the Accounts Payable block. Please Note: For any invoices without an "eVA DO #" shown on it, the department must complete an Accounting Voucher to initiate payment.

Date Ordered:

Enter the date purchase order is typed and sent to vendor.

Delivery required on or before:

Enter the date delivery is required. Choose a realistic date or check with the vendor for lead-time. DO NOT use ASAP or any other abbreviation or phrase that is not a specific date.

Work Order Number:

FOR FACILITIES MANAGEMENT USE ONLY.

Restricted Items:

Any restricted item listed CANNOT be purchased using this form.

Exclusion #:

Enter the appropriate exclusion number that corresponds with the goods/services being purchased.

Detailed Description:

Enter full description of item(s) ordered including model numbers, stock numbers, colors, sizes, and any other information necessary to identify exactly the item you require. List what, if any, equipment, supply or services the item is to be based in conjunction with or of which it is an integral part.

Quantity:

Enter quantity required.

Unit:

Enter unit of measure, i.e. each, doz., set, etc.

Unit Price:

Enter unit price of item(s) ordered. The department is responsible for ensuring the correct price is entered.

Amount:

Enter the result of multiplying quantity by unit price.

Explanation of Non-Eva Purchase If No Exclusion # is provided:

Provide explanation as to why this purchase is not being made through eVA. If the order does not have an exclusion number appropriate for the items being ordered (contact Procurement Services with questions), your department will be charged the 2% fee.

Enter the grand total of all items ordered including shipping and handling charges. Total CANNOT exceed $4,999.99.

Authorized Signature and Date:

Enter the signature of the responsible department official and the date signed. (Approved signature as indicated on signature authorization listing as part of the AVP Finance website). Signature attests that sufficient funds remain in the department's current budget to cover the purchase. This determination is inclusive of all previously issued DPO's or Purchase Requisition Forms.

Receiving Signature and Date:

Enter signature of the department person receiving the item(s). The date should be the date the items are actually received. NOTE: The Authorized Signature and the Receiving Signature cannot be the same person.

.820 James Madison University Purchase Requisition

.821 Required

Most campus department will use the eVA system to create a purchase Requisition (PR) with electronic approvals.

Departments without delegated purchasing authority should use the form for any procurement that an eVA requisition has not been submitted.

.822 Where to Obtain Blank Forms

Blank forms are available from the Office of Procurement Services.

.823 Number of Copies

Submit the original and three copies. Retain part five (goldenrod copy) for departmental records.

.824 Where to Send Completed Forms

Send completed forms for items or services costing more than $4,999.99 to the Office of Procurement Services. Departments without delegation shall forward completed forms for all procurements regardless of dollar amount to Procurement Services.

.825 Forms Preparation Instructions

Following are detailed instructions for the preparation of the Purchase Requisition form. Enter the following information only; all other blocks should be left blank.

Department:

Name of department issuing the requisition.

Deliver By:

The date the department requires delivery. Do not use "ASAP."

Deliver to Building:

The name of the building where the vendor or transfer company should deliver the item(s).

Room No.:

The room number of the building where the vendor/transfer company should deliver the item.

Prepared By:

The name of the person that prepares the requisition. (The Office of Procurement Services will forward copies of completed direct orders and requisitions to the attention of the person listed.)

Telephone Ext.:

The telephone number of the person to contact regarding information on the requisition.

Date:

The date the individual completes the requisition.

Suggested Vendor(s):

The complete Name, Address, ZIP code, Contact person (if applicable), and Telephone numbers of any suggested vendors to receive an Invitation to Bid. The University requires only one (1) vendor for purchases of $4,999.99 or less.

Description:

Provide the name of the item and a complete description to include color, size, part number, stock number, and any additional information necessary to identify the exact requirements for the purchase. The buyer will bid the item as "or approved equal" unless it is a proprietary and/or sole source item. Proprietary and/or sole source item requests require a justification. Attach brochures or literature from catalogs or other sources to the requisition. Use an 8-1/2" by 11" sheet of paper for additional description space. Attach the sheet to the requisition. Enter any specific information pertaining to the purchase, such as the name of an individual to receive the order or to contact prior to shipment or delivery or any other information useful to the selected vendor or the Office of Procurement Services in this section.

The unit price of the item listed. If an exact price per unit is not available, contact the vendor for an estimated price.

Extended Amount:

The result of multiplying the quantity (10) by the unit price (12) for each line item.

Check Applicable Box:

(Actual Freight; Estimated Freight; Price Does Not Include Freight): Check the applicable box if you have obtained freight information from the vendor.

Must Be Completed For Equipment (Purchase/Lease):

Check the appropriate box to show the equipment is a Purchase, Installment Purchase, or a Lease.

NOTE: If this equipment replaces any item included on the Annual Department Fixed Asset Verification, a transfer form must be completed for disposal or transfer of old equipment.

Authorization (Signature/Title):

The signature and title of the Approving Authority for the Department Organization Number. This signature must be the same as the Approving Authority shown on the Signature Authority Form held by the Office of Finance.